Beating slowdown: Top Gujarat businessmen like Zydus Cadila's Pankaj Patel and Dishman Pharma's Janmejay Vyas take pay cuts

AHMEDABAD: Gujarat Inc is cutting corners to beat the slowdown. And, its captains are leading from the front. The economic downturn has prompted promoters of leading firms in Gujarat to slash their salaries, which includes commission, by up to 50% or have refrained from taking hikes.

For instance, Zydus Cadila promoter Pankaj Patel was among the 10th highest paid CEO in India in 2001-10 with a pay packet of Rs 28.6 crore. In 2011-12, he drew Rs 12 crore.

Similarly, Dishman Pharma's chairman and MD Janmejay Vyas has decided to draw a lower salary. Even promoter of state's largest corporate house, Gautam Adani, has not taken an increment this year.

Torrent Power's whole-time director Markand Bhatt's pay came down to Rs 12.53 crore in 2011-12. He stood second among the highest paid directors in India with Rs 21.5 crore in 2009-10.

However, there are others like Torrent Group chairman Sudhir Mehta, whose pay went up. Mehta's salary and commission from the group's power business has gone up by Rs 9.50 crore from Rs 7.50 crore in 2010-11 and Rs 6.87 crore in 2009-10.

Mehta earned a salary of Rs 3 crore from Torrent Pharmaceuticals in 2011-12, up from Rs 2.5 crore in 2010-11. Brother Samir Mehta, MD of Torrent Pharmaceuticals, earned Rs 5 crore in 2011-12, a slight increase from Rs 4.13 crore in 2010-11. Mehta earned Rs 10.13 crore in 2009-10.

Sunil Parekh, advisor, CRISIL, said, "The situation is dull with some industries cutting back on productions and stocking up on inventories, forcing some CEOs to operate on principles and personal values by cutting their salaries."